Creditors' Plan Divvies Up Fabrikant's Spoils

Law360, New York (September 28, 2007, 12:00 AM EDT) -- M. Fabrikant & Sons' creditors have filed a disclosure statement and plan of liquidation for the bankrupt diamond jewelry giant, outlining procedures for carving up its and subsidiary Fabrikant-Leer Intl. Ltd.'s assets.

In the papers filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York, the creditors explained their plan to create two liquidating trusts, a shared assets trust and a general unsecured creditors' trust, to sell off the floundering company's assets.

Under the plan, all administrative expenses, priority tax, professional fee,...
To view the full article, register now.